When Facebook agreed to acquire the photo-sharing service in April, it did so at a $1 billion valuation. Under the terms of the deal, Facebook will pay Instagram $300 million in cash in addition to 23 million shares.
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Facebook has set its opening share price at $38, higher than initially expected. At that share price, the total purchase price of Instagram would actually be worth $1.17 million -- a 17% increase in the value of the deal.
The bump still doesn't come close to matching the giant increase in valuation Instagram received when Facebook decided to acquire it.
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One week before Facebook and Instagram reached their $1-billion agreement, venture capitalists invested $50 million in Instagram at a $500 million valuation.
Since the acquisition announcement, Instagram has rocketed from about 30 million users to more than 50 million. Much of this growth is attributable to its first Android app, which launched just six days before Facebook announced the acquisition and hit 1 million downloads within a day.
The FTC has reportedly launched a competition probe into the acquisition, which could take as long as 12 months to complete before the acquisition is approved.
This story originally published on Mashable here.